Tariff Tug-of-War: Chinese and European Auto Giants Clash Over EV Market

The European Union's planned tariffs on Chinese-made electric vehicles have sparked warnings from Chinese manufacturers like BYD, potentially raising prices and reducing accessibility for consumers. Amidst growing competition at the Paris car show, Europe and China vie for dominance in the EV market landscape.

The European Union's potential implementation of tariffs on Chinese electric vehicles has stirred concerns among major Chinese manufacturers such as BYD. Speaking at the Paris car show, BYD's Vice President Stella Li cautioned that these tariffs could raise EV prices, thus deterring buyers and adversely impacting lower-income consumers.

The event, Europe's largest car exhibition, highlighted increased competition as both Chinese and European automakers showcased their latest models. Despite Chinese brands representing roughly half of the show's entries last year, they now constitute only a fifth, with European makers showing a strong presence to defend their market share.

European automakers face tough challenges with low demand and rising costs, exacerbated by an aggressive Chinese market expansion. Notably, Chinese makers like Leapmotor and GAC are advancing plans for European distribution despite EU tariffs, while facing restricted access to the U.S. under heavy tariffs and potential bans on key technologies.

(With inputs from agencies.)